Wednesday, November 23, 2011
By Pranjal Gera
Carmakers slash production considering drop in demand
Automobile manufacturers in the nation are now slowing down on their production rate sighting the decline in demand of vehicles, due to rise in petrol prices and interest rates. Also, the decision to move at decelerating pace is taken into consideration in order to reduce the accumulation at dealership ends.
Mr. Mayank Pareek, the Managing Executive Officer at Maruti Suzuki said that the company has witnessed some unexpected circumstances forcing the firm to drop its production rate. The company majorly focuses on the manufacturing of hatchback petrol cars, but at present the demand has transferred to diesel cars due to hike in petrol costs, he added.
The largest carmaker is prepared to close this financial year with a 10 percent plunge in production. Since August month, Maruti Suzuki has cut the production of its petrol powered cars such as sedans SX4 and Dzire together with hatchbacks Wagon R and best selling small car Alto.
On the other hand largest carmaker’s opponent Hyundai Motors India Limited (HMIL) is paying attention towards the overseas selling, in order to recover the loss it has incurred due to unstable market situations. The Korean company exports hatchbacks Santro Xing, i10 and i20.
HMIL, Director- Sales and Marketing, Mr. Arvind Saxena stated that the company sells its vehicles in around 120 countries worldwide and sighting the uneven conditions in the domestic auto sector it has aligned its production towards the exports.
The other global auto majors in India such as Skoda, Audi, Volkswagen and Nissan along with General Motors has slashed the output rate by 20 percent to 25 percent this quarter. Although, Honda Siel and Fiat India have done the cut off in production on massive rate.